Another Credit Downgrade

by Staff | Jul 27, 2018 8:03 am

For the second time in two days, a ratings agency has downgraded New Haven’s credit.

The latest came Thursday evening, from Fitch, which downgrade the city’s credit rating two notches from Fitch from A- to BBB.

Read the Fitch report here.

It mirrors a similarly disappointing report issued Wednesday by Standard & Poors. Read a story about that here.

The ratings affect the interest rates the city can get in borrowing money, which makes it cost more. And the Harp administration is preparing to “refund” or refinance $160 million in bonds to help retire the past fiscal year’s operating budget deficit, a practice that in itself ratings agencies generally frown on.

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Avatar for One City Dump

One City Dump

Refund This Notes:

When Mayor Harp ran for re-election, she repeatedly said she has accomplished balanced budgets. She knew and her campaign/city staff knew this to be untrue. Fitch and S & P have both noted the structural imbalances and the deficits from last year and this one. Harp lied.

That this small city runs any deficit is illegal under state law and our charter - but more importantly, it is a violation of common sense and shows a gross disrespect for taxpayers. The recklessness of this behavior cannot be understated.

Mayor Harp should resign. At very least, she has shown she is incapable of successfully managing this city and should voluntarily submit to oversight by the state. If she won't, she should be dragged kicking and screaming into that process. We can't afford more double digit tax hikes.

Avatar for robn

robn

Not disappointing. If our city officials are so oblivious to spending that they're willing to raise our property taxes by 11%, any other entity that throws water on their ability to borrow is actually helping citizens.

Avatar for 1644

1644

Harp looks lots and clueless in this NHR interview:
https://www.nhregister.com/news/article/Harp-looks-for-New-Haven-to-get-slice-of-hospital-13112281.php#photo-15931805
Yes, 37 teachers are gone, but she still has her police drivers. No mention of cuts to her staff or the BoA's staff. Teachers are less important than her drivers and pets. And all she can think of are new ways to get money.

BTW, shortening the tax phase in for new development is a good idea, but would likely mean less affordable housing being built in new projects.

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Another Credit Downgrade

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